Pembina Co-op 2023 Annual Report 

On June 12, 2024, Pembina Co-op held its Annual General Meeting, where the Board of Directors and General Manager shared highlights and successes from the 2023 fiscal year.

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Board of Directors Report

The Board reported strong financial results, with total sales reaching $202.1 million, a decrease from $232.1 million in 2022 due to deflation in commodity lines. Despite this, pre-tax earnings were $10.3 million, down from $12.0 million the previous year. Pembina Co-op's balance sheet remains strong, with total assets at $138.3 million and members' equity, reserves, and retained savings totaling $88.9 million.

A key highlight was the announcement of a $5.5 million patronage allocation to members from 2023 savings. Pembina Co-op also invested $3.0 million in new capital assets, including new equipment and infrastructure, with plans for an additional $5.5 million in projects for 2024.

Pembina Co-op continues to support local community organizations, donating nearly $115,000 in 2023. The Board expressed gratitude to the members for their ongoing support.

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Managers Report

General Manager Curtis Lehouillier presented the Manager's Report, beginning by introducing Pembina Co-op's new mission, values, and aspirations. He explained that the vision remains unchanged following a thorough review in 2023.

Market Pillar:

Pembina Co-op saw total sales of $202.1 million in 2023 and welcomed 446 new memberships. Although these figures were lower than in 2022, Pembina Co-op continues to average about 8% annual growth in sales over the last five years.

Operations Pillar:

The focus remains on retail performance, inventory management, and health and safety. Lehouillier explained that Pembina Co-op has set a target of achieving local earnings of 2% of sales. Local earnings refer to net income excluding the FCL patronage allocation. In 2023, local earnings were $5.1M, or 2.5% of sales, exceeding the target. Notable progress also included the implementation of a new safety app for employees.

Financial Pillar:

Pembina Co-op continues to strengthen it's financial position. Over the past five years, Pembina Co-op has allocated $26.7M to its members while paying back $24.0M in cash. During this period, members' equity increased from $4.0M to $35.2M, and reserves grew by $16.4M to $53.7M. By growing reserves, we are strengthening the balance sheet and increasing our ability to grow the business in the future. Plans include reinvesting $19.2 million in capital assets over the next five years.

Sustainability Pillar:

Pembina Co-op emphasizes careful management of petroleum, fertilizer, and chemical operations to prevent spills and promote energy efficiency. As mentioned in the Director's report Pembina Co-op donated nearly $115,000 back to our communities through various projects and events. The Co-op also paid nearly $508,000 in property taxes, and returned $5.6M in cash back to its member, all dollars that remain here in our communities.

People Pillar:

Lehouillier emphasized that of all of the pillars of corporate performance, the People Pillar has the greatest impact on the success of our Co-op. Employee engagement and development are key priorities. In 2023, 11 employees participated in training programs, and the Co-op held its first Employee Appreciation Evening to recognize long-serving staff. Lehouillier took the time to personally thank and congratulate existing team members who have reached or are reaching service milestones with the Co-operative Retailing System this year. 

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Auditor's Report & Financial Statement

Finance & Risk Manager Delia Bahuaud presented the Auditor's Report and Financial Statement, providing a comprehensive overview of Pembina Co-op's financial performance for the fiscal year ending January 31, 2024. The report was audited by MNP, LLP, Chartered Professional Accountants.

FOR THE FULL AUDITOR's REPORT, please see the attached below.

Pembina Co-op thanks its members for their continued patronage and looks forward to serving the community in the coming year.